Hello reader, hope you’re doing well. Markets may falter in early trades on the back of weakness in other Asian indices after US markets shed ground overnight. Profit booking is likely to be the preferred theme, as the advantage of softer US CPI & PPI optimism is seen fading, with Chinese growth concerns also weighing on the sentiment. Hence, expect caution to be the buzzword for bulls’ camp as long as Nifty is trading below the 18351 mark. The biggest support for the index is at 18181 mark and below the next support is at 18100 mark.
Important points to note:
- Nifty finding strong support again today at 18200 levels.
- Nifty auto continuing it’s upside strongly even today while most sectors are in the red, live example of how stronger sectors can lead even in overall bleak market conditions.
- NTPC being one of the slowest in the PSE basket to gain, but key point to remember is that it’s got the highest weightage in the index along with Powergrid, so now while the latter takes a back seat, this one can start it’s rally and lead the index to new ATH levels.
- Cement stocks as mentioned earlier still poised for a breakout (ambuja cements and india cements), both in a consolidation phase currently.
As always, risk management is key, and a proper system in place prevents one from losing out too much, in case of outlier events. Have a good trading day, and may the force be with you!
Disclaimer: this post is for educational purposes only, we are not SEBI registered analysts. Trades mentioned here are not trade recommendations. Equity Investments are subject to 100% market risk, please consult your financial advisor before investing.